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Economic Growth

EBRD Names Tajikistan One of Central Asia’s Fastest-Growing Economies

Tajikistan continues to record one of the strongest economic growth rates in Central Asia, according to the European Bank for Reconstruction and Development (EBRD) in its June 2026 Regional Economic Prospects report. The EBRD estimates that Tajikistan’s economy grew by 8% year-on-year in the first quarter of 2026, supported by growth in trade, transport and communications, along with strong manufacturing growth and higher electricity generation. Fixed capital investment rose by 34.2% in the first quarter compared with the same period last year, one of the strongest performances in the region. For comparison, fixed capital investment in neighboring Kyrgyzstan rose by 25.5% during the same period, while Kazakhstan recorded growth of 6.4%. The bank attributed Tajikistan’s strong investment activity partly to public spending commitments, including the Rogun hydropower project, one of the country’s flagship infrastructure developments. Once completed, Rogun is expected to become a key part of Tajikistan’s power system and a major source of electricity exports to neighboring countries. The EBRD also noted strong growth in manufacturing, which increased by 29.6% year-on-year in January-March 2026. Electricity generation rose by 7.5%, while mining output contracted by 9.8%. Officials at Tajikistan’s State Committee on Investment and State Property Management said the figures reflect sustained interest in the country’s economy and create additional opportunities to attract domestic and foreign investors into priority sectors. Tajikistan has increasingly positioned itself as a regional energy hub, particularly through hydropower. As previously reported by The Times of Central Asia, the country has the largest hydropower potential in Central Asia. Tajikistan’s annual hydropower potential is estimated at 527 billion kilowatt-hours, while the country accounts for a large share of Central Asia’s water resources. Despite that, much of its hydropower capacity remains untapped. International industry estimates suggest that only around 4% of Tajikistan’s hydropower potential has been developed, leaving significant room for future investment and expansion.

Transport Infrastructure

Tajikistan EBRD Cooperation Targets Telecoms and Border Logistics

Tajikistan is set to attract approximately $43 million in financing to modernize its telecommunications infrastructure, while the government and the European Bank for Reconstruction and Development (EBRD) are also advancing plans for a new logistics hub on the border with Uzbekistan. The initiatives were discussed during the EBRD Annual Meeting and Business Forum and reflect the bank’s broader support for improving digital and transport connectivity in Tajikistan. A memorandum of understanding was signed between Tajikistan’s Ministry of Finance, the Communications Service under the government, and the EBRD to support the modernization and expansion of the country’s telecommunications network. The document was signed by First Deputy Finance Minister Yusuf Majidi, First Deputy Head of the Communications Service Parviz Noriyon, and Holger Münt, EBRD director for telecommunications, media and technology. The project aims to expand digital infrastructure, improve access to modern communications services, enhance service quality and support the country’s ongoing digital transformation. The planned investment of approximately $43 million is expected to strengthen regional connectivity while creating new opportunities for businesses and consumers. Separately, Transport Minister Azim Ibrohim met with EBRD Country Director for Tajikistan Holger Wiefel and other bank representatives to discuss transport infrastructure projects, including plans for a logistics center at the Dusti border crossing in Tursunzade, on the Tajik-Uzbek border. The talks focused on a preliminary feasibility study for the proposed logistics hub, covering legal, technical and economic aspects of the project. Officials said the preparatory work should allow the initiative to move to the next stage of implementation. The parties also reviewed the progress of ongoing transport-sector investment projects and discussed opportunities for further cooperation. The discussions come as Tajikistan seeks to strengthen both its physical and financial links with external partners. Last week, TCA reported that officials from the National Bank of Tajikistan and the Agricultural Bank of China had discussed expanding interbank cooperation, easing trade payments, supporting Chinese-backed investment projects and using digital tools in Tajikistan’s financial sector. The two sides also discussed the possibility of opening branches of Chinese banks in Tajikistan. That push reflects the growing role of external finance in Tajikistan’s infrastructure plans. TCA has previously reported that more than 70% of funding for the country’s state investment projects comes from three institutions: the World Bank, the Asian Development Bank and the EBRD, with China also remaining an important source of trade and investment financing. Tajikistan EBRD cooperation goes back more than three decades. Since beginning operations in the country in 1993, the bank has invested more than €1 billion across 192 projects. Under its 2025-2030 country strategy, the EBRD is focusing on private-sector competitiveness, sustainable energy, transport, municipal infrastructure, financial-sector development and support for small and medium-sized enterprises, with connectivity projects expected to play an increasingly important role in Tajikistan’s economic development and regional integration.

EBRD

Uzbekistan-Born Mansurova Named EBRD Regional Head for Kyrgyzstan, Tajikistan, and Turkmenistan

The European Bank for Reconstruction and Development (EBRD) has named Nodira Mansurova as its next regional head for Kyrgyzstan, Tajikistan, and Turkmenistan, putting her in charge of operations in three Central Asian markets where the bank has invested more than €2.5 billion combined. Mansurova will be based in Bishkek and is expected to take up the post on September 1, 2026. She will replace Ayten Rustamova, who has led the regional office since 2021. The appointment gives Mansurova oversight of one of the EBRD’s more varied regional portfolios in Central Asia. As of March 31, 2026, the bank’s cumulative investment stood at €1.177 billion in Kyrgyzstan, €1.059 billion in Tajikistan, and €327 million in Turkmenistan. The three countries present different operating environments for the bank. In Kyrgyzstan and Tajikistan, EBRD activity has included infrastructure, private-sector development, financial services, and energy-related projects. In Turkmenistan, the bank’s work has been more limited and has focused mainly on private businesses and financial-sector activity. Mansurova has worked for the EBRD since 2001. Born in Uzbekistan and now a British citizen, she has held roles in London and in several countries where the bank operates. Her previous posts included regional head of SME Finance and Development for Central Asia, based in Almaty, and head of the EBRD’s operations in Tunisia. Her new role comes as international financial institutions continue to focus on infrastructure, energy transition, private-sector growth, and regional connectivity in Central Asia.

EBRD

EBRD Invests $125 Million in Kazakhstan Railway Operator Eurobond

The European Bank for Reconstruction and Development is investing up to $125 million in a Eurobond issue by Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ). The bond, with a total value of up to $1 billion, was listed on the London Stock Exchange, Kazakhstan Stock Exchange, and Astana International Exchange. The EBRD’s investment will help modernize passenger stations across Kazakhstan, supporting improvements in safety and operational performance. The upgraded stations are expected to offer higher throughput capacity, modern lighting, and significant enhancements for passengers with disabilities. According to the Kazakh Ministry of Transport, a large-scale reconstruction and modernization program covering 124 railway stations nationwide began in 2025. The initiative aims to improve convenience and accessibility for all passengers, including those with disabilities, and to bring Kazakhstan’s railway infrastructure in line with international quality and safety standards. Additional infrastructure upgrades financed by the bond will take place along the Trans-Caspian Corridor and are expected to support more sustainable rail transportation between Europe and Asia. The EBRD will also mobilize technical cooperation funds to help KTZ adopt international standards in passenger rail services, including measures to strengthen cybersecurity. KTZ owns and operates a 16,400-kilometer railway network and manages more than 1,700 locomotives, 46,800 freight cars, and 2,300 passenger cars. In the first quarter of 2026, KTZ transported approximately 3.2 million passengers. KTZ also transported 64.5 million tons of cargo in the first quarter of 2026, an increase of 360,000 tons compared to the same period last year. Domestic shipments accounted for 40.8 million tons, while exports totaled 23.7 million tons, up 2.2%.

Energy Transition

Kazakhstan Launches QaJET Investment Platform for Just Energy Transition

Kazakhstan has announced the launch of the QaJET (Just Energy Transition) investment platform, supported by the European Bank for Reconstruction and Development (EBRD), to attract international financing and accelerate the decarbonization of its economy. A corresponding memorandum was signed on April 23 during the Regional Environmental Summit in Astana. Signatories included Energy Minister Yerlan Akkenzhenov, Minister of Ecology and Natural Resources Yerlan Nysanbayev, and EBRD Managing Director for Central Asia and Mongolia Hüseyin Özhan. The QaJET platform reflects Kazakhstan’s ambition to accelerate the transition to clean energy through a large-scale expansion of renewable energy capacity. According to current plans, the country aims to commission 10 GW of new green capacity by 2035. According to EBRD estimates, achieving these targets will require approximately $20 billion in investment from both public and private sources. This is expected to reduce greenhouse gas emissions by more than 20 million tonnes annually, equivalent to roughly 7% of the country’s energy-related emissions. The creation of the platform is of strategic importance for Kazakhstan, whose economy remains highly carbon-intensive and heavily dependent on coal-fired power generation. At the request of the Kazakh government, the EBRD participated in developing the QaJET concept and will continue to coordinate its implementation with national and international partners. The platform is also intended to support Kazakhstan’s international climate commitments, including achieving carbon neutrality by 2060 and reducing greenhouse gas emissions by up to 25% by 2030 compared to 1990 levels. QaJET is expected not only to reduce emissions but also to strengthen energy security, enhance economic competitiveness, and promote the development of local high-tech manufacturing in the renewable energy sector. Key areas of cooperation within the platform include expanding renewable energy capacity, modernizing power grids and energy storage systems, electrifying businesses and households, and supporting a just transition, technology transfer, and the development of research and innovation capacity. Authorities expect QaJET to become the central mechanism for coordinating climate finance, bringing together international financial institutions, donors, private investors, and the government to accelerate Kazakhstan’s energy transition.

Low-Carbon Transition

Kazakhstan and EBRD Strengthen Cooperation on Climate Agenda

Kazakhstan intends to expand cooperation with the European Bank for Reconstruction and Development (EBRD) in the field of climate policy and the transition to a low-carbon economy. Minister of Ecology and Natural Resources Yerlan Nyssanbayev held talks with EBRD Managing Director for Climate Strategy and Delivery Gianpiero Nacci. Following the meeting, the parties confirmed their intention to strengthen their partnership in advancing the climate agenda and achieving carbon neutrality. Kazakhstan has set a target of reaching carbon neutrality by 2060 and has adopted an updated Nationally Determined Contribution (NDC 3.0), which requires a 17% reduction in greenhouse gas emissions by 2035 compared to 1990 levels. With EBRD support, several projects are already underway in the country, including efforts to reduce methane emissions in the wastewater treatment sector and to improve the emissions trading system. These measures are aimed at developing the carbon market and enhancing its efficiency. Kazakhstan is also developing "Qajet," a country platform for energy transition, to help coordinate climate financing and identify priority projects. The energy sector, the largest source of emissions, is expected to be its main focus. Kazakhstan and the EBRD plan to continue expanding their cooperation, focusing on the implementation of practical projects aimed at sustainable, low-carbon development.